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AT&T presses its advantage Add to ...

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When a company invests, it may be priming for growth or digging in for a fight. This week AT&T said it would put $22-billion in capital spending into its wireless and wireline networks in each of the next three years, $2-billion to $3-billion more than current levels. Optimism or fear?

AT&T says additional investment will allow its key products – 4G wireless, high-speed internet services, TV/voice/Internet bundles – to grow faster. Costs will be cut as more of the back end moves to a modern fibre network, and away from copper and circuit-switching. At the same time, AT&T says it will not roll back its aggressive share buyback plan despite the higher capital spend.

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